 "sebi")
Capital markets regulator Sebi has barred two individuals from securities markets for one year and levied penalties totalling Rs 25 lakh on them for indulging in insider trading in the shares of Aptech Ltd.
In addition, Sebi directed two individuals -- Lashit Lallubhai Sanghvi and his wife Neha Sanghvi -- to disgorge notional profits totalling Rs 99.72 lakh along with interest at the rate of 9 per cent per annum from September 2016 till the date of actual payment.
Lashit, Late Rakesh Jhunjhunwala and others co-founded Alchemy Capital Management, an investment management firm, and Jhunjhunwala was the chairman/ promoter of Aptech.
Besides, the regulator restrained Lashit and Neha from securities markets for one year and also barred them from dealing in the securities of Aptech for two years.
The present proceeding emanated from a show cause notice issued in October 2020 against nine individuals, including Late Rakesh Jhunjhunwala, Lashit Sanghvi and Neha Sanghvi, following an investigation conducted by Sebi pertaining to trading in the scrip of Aptech Ltd for the period March-September 2016.
Out of the nine individuals, seven including Rakesh and his wife Rekha Jhunjhunwala had settled the proceedings with Sebi on July 14, 2021.
The investigation was undertaken by the regulator so as to ascertain whether certain entities have traded in the scrip of the firm on the basis of unpublished price sensitive information (UPSI), in contravention of PIT (Prohibition of Insider Trading) rules.
Aptech had made a corporate announcement on September 7, 2016, saying that it has forayed into the pre-school segment.
Considering the nature of the announcement along with the impact of the same on the scrip price, the announcement was considered as UPSI and the period of UPSI was from March-September 2016.
In its probe, Sebi found that Jhunjhunwala was in possession of UPSI and communicated the same to Lashit through a phone call.
The regulator also noted that due to Lashit's long association with the chairman of Aptech, it can be concluded that he was having the access to the UPSI through Jhunjhunwala and is considered as an 'insider' of the company.
The trades were executed by the couple on August 19, 2016 and on September 7, 2016, Sebi said in the order passed on Tuesday.
Further, Neha Sanghvi, wife of Lashit, had admitted that the decision to trade in the scrip of the Aptech in her account was made by her husband, thereby violating the PIT rules.
"Lashit Sanghvi in communicating the UPSI to his wife as well as acts of both of them to execute the trades in the scrip of Aptech during the UPSI period were in the nature of insider trading, leading to accrual of notional gains. Thus, the charges of insider trading have been established against the noticees," Sebi's whole-time member S K Mohanty said in the order.
Lashit and Neha earned profits of Rs 49.87 lakh and Rs 49.84 lakh, respectively, in respect of their trades in the scrip during the investigation period.
By indulging in such trades, the regulator slapped a fine of Rs 15 lakh on Lashit Sanghvi and Rs 10 lakh on his wife Neha Sanghvi for violating the provisions of insider trading norms.
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